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Setting up in India

Since the advent of liberalization, setting up a business/company in India or incorporating a company in India is no more a distant dream. The rapid change in the structure of the government to deregulate its economy has further made it untroublesome to incorporate or setting up a business in India. Addressing the rise of market friendly environment, there are various helping hands who can guide you to build your entry and exit strategy.

The following prerogatives are available for setting up a Business/Company in India:

  • Wholly Owned Subsidiary;
  • Joint Venture Company; or
  • Limited Liability Partnership

Pertaining to the requirement of investors, foreign equity in such Indian companies can be up to 100%, which in turn are subject to equity caps to the respective areas of activities under the policy of Foreign Direct Investment (FDI).

For setting up a company in India in a hassle free manner, a foreign company can initially begin with:

1. Liaison Office/Representative Office:

Liaison office acts as a bridge between primary place of business and entities in India. No commercial activity can be undertaken in Liaison office, and therefore cannot make an earning in India. It plays a limited role of collecting adequate information of required market opportunities and produce data about the company and its products to the Indian customers.

2. Project Office:

Companies from abroad who are planning to initiate specific projects in India, have the opportunity to set up temporary project/site offices in India. Such companies are restricted to carry forward any activity which stands at par from the project.

3. Branch Office

Foreign companies involved in occupational activities in abroad have the permission to set up Branch Offices in India. This branch office does not have the permission to initiate manufacturing activities on its own but has the permit to re allocate his role to an Indian manufacturer.

Role of Ahlawat & Associates in Setting up in India:

  • Advise on Entry Strategy and structuring of Business set up in India
  • Identification and selection of the place of business
  • Incorporation of the Company or Branch or Liaison Office in India
  • Bank account opening and getting Finance
  • Getting approvals at various regulatory bodies/agencies
  • Ongoing compliance with all laws and regulations
  • Accounts and Payroll maintenance
  • Compliance with FEMA/RBI for fund transfers

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